As part of its expansion strategy, Colgate-Palmolive Company CL announced on Tuesday that it has signed an agreement to acquire Care TopCo Pty Ltd, owner of Australian pet food brand Prime100. This move is part of Colgate’s plan to grow its Hill’s Pet Nutrition division by entering the fresh pet food market. The acquisition will complement Hill’s current specialty pet food products and strengthen its presence in Australia.
The deal aligns with Colgate’s broader strategy of investing in high-growth adjacent categories while reinforcing its science-backed, veterinarian-endorsed pet food portfolio. The acquisition is expected to provide Hill with opportunities for expanded distribution and increased brand awareness, capitalizing on Prime100’s premium positioning and veterinary endorsement.
While the transaction is not expected to significantly impact CL’s 2025 earnings, it reinforces the company’s commitment to long-term growth in the pet nutrition sector. The acquisition will be funded through a mix of debt and cash.
More Insights Into CL’s Strategic Expansion
Prime100, based in Melbourne, has been a leading brand in fresh pet food since 2014, offering both refrigerated and shelf-stable products backed by science and recommended by vets. The deal is expected to be completed in the second quarter of 2025, pending approval from Australian regulators.
Prime100 is a trusted, vet-approved premium brand with a unique market position that aligns with our long-term pet nutrition growth strategy. This acquisition brings a high-growth, profitable fresh dog food brand to the Hill’s portfolio, offering opportunities for further expansion through increased distribution and brand awareness.
Per the president of Hill’s Pet Nutrition, the company is dedicated to enhancing and extending the special bond between people and their pets. With the addition of Prime100, Hill’s will expand its portfolio of science-backed, veterinarian-endorsed nutrition products, helping pet owners meet their pets’ specific dietary needs. There is excitement about collaborating with the Prime100 team, with confidence that the combined expertise will lead to innovations, support veterinarians and provide more tailored nutritional solutions for pets.
Beyond immediate financial returns, the acquisition provides Hill’s with valuable expertise in fresh pet food manufacturing and distribution, which are the key capabilities as the industry shifts toward fresher, less processed options. This knowledge could support future expansion into other high-growth markets where demand for fresh pet food continues to rise.
What’s More
Colgate, a U.S.-based multinational consumer goods company, continues to execute its strategy of delivering both core and premium innovations, increasing advertising investments and expanding its capabilities to strengthen brand presence and drive household penetration. It remains committed to premiumizing its Oral Care portfolio through major innovations, with products like CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste performing well.
Strong pricing strategies and productivity initiatives have contributed to Colgate’s growth, with the company implementing aggressive price increases over the past few quarters, leading to improved margins in fourth-quarter 2024. During the quarter, pricing rose 1.8% year over year, supported by positive pricing trends across several divisions.
Additionally, Colgate continues to invest in scaling key capabilities in digital, data and analytics to enhance its competitive edge and drive profitability. However, CL has been witnessing inflationary pressures and a challenging macroeconomic environment for quite some time now. Foreign currency fluctuations are also acting as headwinds. The sales view for 2025 includes a mid-single-digit negative impact from unfavorable currency exchange rates.
Shares of this Zacks Rank #3 (Hold) company have lost 8.4% in the past three months compared with the industry’s decline of 5%.
CL Stock's Price Performance in the Past Three Months
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